As our economy worsens, there seems to be no way out. If we don't use the government stimulus to create jobs and demand we risk a deeper recession. Yet any government spending increases the deficit, which must be paid off in future taxes.

There is a solution though, at least according to proponents of the monetary reform movement. One benefit would be NO income tax! Got your attention? This new movement revives an issue that goes back to before the Revolution: who is to control our money and the issuing of credit.

Monetary issues have been important throughout our history and such greats as Franklin, Jefferson, Jackson and Lincoln have warned against private interests controlling our national prosperity. However with the passage of the Federal Reserve Act by Congress in 1913, control of monetary policy was essentially given over to private banks, for despite the name, the "Fed" is not part of the government.

Under the Reserve System, in thousands of banks, all "new" money comes into being as a debt, with interest, that is literally created out of thin air as a computer entry! The sensible question asked by reformers is: if banks can perform that bit of magic, why can't the government, at little or no interest?

The following are the main points of monetary reform: (1) the nationalization of the Federal Reserve; (2) creation of a private closely regulated system of banks with 100 percent reserve requirements that could offer permanent fixed rates as low as 1-2 percent, with interest returned to the Treasury in place of income tax; (3) "self-funding" of all federal programs that "promote the general welfare" such as free or affordable health care, education, child care, an expanded national pension plan, and a public infrastructure program; (4) funding for research and development in alternative energy, transportation, and environmental cleanup; (5) payoff of the Federal debt and an end to all further borrowing; (6) elimination of the income tax and replacement with taxes on speculative trades and non-productive wealth; (7) a yearly national dividend, similar to the Alaska program, for all citizens.

The main objection is that this would be hopelessly inflationary. Yet reformers contend that as long as government spending created real goods and services and supply grew slowly to meet demand, there should be no problem with inflation. The current gap between national income and GDP is around $4 trillion, which we now borrow. The same amount spent by the government shouldn't be inflationary. Furthermore, over production, unused industrial capacity, and increased employment could easily allow supply to rise with demand.

It's also suggested that the real causes of inflation, as well as our current financial crisis, comes from the present system itself, in that it generates huge societal debts (over $50 trillion!), and encourages excessive speculation. For more details one should check out these key reformers: Ellen Brown, author of "The Web of Debt" (webofdebt.com); Stephen Zarlenga, with "The Lost Science Of Money" and his American Monetary Institute or AMI (monetary.org); and Richard C. Cook, who wrote "We Hold These Truths: The Hope Of Monetary Reform" (richardccook.com). See also the American Monetary Act sponsored by Rep. Dennis Kucinich.

Michael Wade lives in Carrboro.